January 29, 2018 - Il Sole 24 Ore published an editorial by SEP senior fellow Daniel Gros. In this article, Professor Gros discusses how during the euro crisis, the single currency area ended up in a "doom loop"; a vicious circle in which some weak banks, largely located in 'peripheral' countries, rationed their credit, which only provoked the recession and increased the pressures on state finances. However, as he points out, these self-reinforcing spirals can also work in reverse. His insightful article helps readers understand the dynamics that could be crucial to determining the relative strength of the eurozone going forward.